- Ethereum achieved a new all-time high at around $4,900, which points to increased bullish momentum and substantial investor enthusiasm in the crypto realm.
- The stochastic RSI will help to signal early topping signals even when RSI is above 60 as it indicates that the momentum is strong, yet it is necessary to monitor support levels.
- Historical support at 3,500 is an important turning point, which may become one of the supporting points of price stabilization and the grounds of future recoveries.
Ethereum (ETH) hit a new all-time high, touching $4,900, and confirmed its bullish momentum. Analysts caution that September may provide increased volatility and open the door for more downside risk towards a retest of near $3,500.
Momentum Indicators Signal Early Caution
The weekly ETH chart shows momentum indicators pointing to potential short-term weakness. A bearish stochastic RSI cross has historically coincided with local cycle tops. Currently, the stochastic RSI is rolling over, flashing a possible bearish cross, though confirmation below 80 has yet to occur.
In the meantime, the relative strength index (RSI) has remained above 60, which indicates that the bullish momentum is still there. Analysts say that if RSI falls below 60 then it could lead to a deeper pull-back. RSI rising and holding above 60 is much-needed to support the current uptrend.
CryptoFlow highlighted that in previous cycles, local tops were marked by both stochastic RSI signals and RSI peaking before declining. Traders are closely monitoring these indicators as September begins.
Price Structure Suggests Resistance and Support
Ethereum has moved to new highs but the zone of $4,900 offers a resistance area. This is the area that previously formed tops in the cycle in 2021, and should be a point of interest in the possible short-term rejections. Traders expect cautious trading around this zone.
If a correction occurs, ETH could test the $3,500 support level. This green support band has repeatedly acted as a pivot during the 2023–2025 cycle. A retest here may provide a solid foundation for the next upward move.
Historical patterns also indicate September tends to be volatile for Ethereum. Even amid a strong macro uptrend, seasonal trends could drive temporary weakness, making careful monitoring essential for market participants.
Potential Path and Key Levels
Traders are watching momentum indicators to gauge ETH’s near-term direction. If RSI stays above 60 and stochastic RSI avoids confirming a bearish cross, ETH could maintain bullish momentum. Conversely, a confirmed stochastic RSI downturn could accelerate a pullback.
A retreat into the $3,500 support region remains possible if selling pressure increases. This level has historically served as a critical pivot, helping stabilize ETH before resuming upward momentum.
CryptoFlow’s analysis reinforces that early topping signals should not be ignored. Monitoring RSI and stochastic RSI in September will likely determine ETH’s short-term trajectory, balancing between potential pullbacks and further bullish runs.
